How to Become a Repo Agent

Repo Agent Laws and Regulations

If you want to be a repo agent, you first need to look into local laws and regulations because sometimes regulations control who can become a repo agent. For example, many states have laws that deny an applicant a license because of bad moral fiber, disreputable or illegal lifestyle, or for untruths and dishonesty; many foreign governments have similar laws. Usually, an agent or agency needs insurance, bond assurance, and/or license(s). Calling or visiting local law authorities is a good way to get info about agencies governing repo licenses. Beware of websites that have misinformation or out-of-date facts.

Learn to Repo by Working the Job

Another great technique to get the right facts is to contact local repo agencies. Most successful repo agents advise would-be repo agents to work for an established agency before striking out on their own. While working for a repo company, you can learn how to be a competent professional. If you establish yourself as a responsible agent, you can earn the trust of local businesses that hire repo agents. Sometimes having the equipment and the knowledge of how to be a repo agent isn’t enough to get the contracts necessary to keep your business afloat. You need the reputation of being able to get the job done — without a glitch!

Go to Repo School or Apprentice with a Repo Agency

You can learn to be a repo agent through a reputable school or with hands-on apprenticeship. In some regions, especially outside the United States, local laws dictate how a person may learn the repossession trade. If schooling is desired or required, find an accredited school. An Internet search discloses many schools that offer training, but you should choose a fully accredited school — avoid fraudulent companies offering bogus schooling. A benefit to being an apprentice at a repo agency is that some agencies reimburse their agents for schooling at an authorized school.

Who Hires a Repo Agent

Many different institutions and people hire repo experts. Banks, car dealerships, law offices, and many others engage their services. An agent needs to know if a person or business can legally request a repossession. It is especially tricky when private individuals want something repossessed.

What do Repo Agents Repossess

Repo agents can repossess many different types of vehicles, but usually they repo cars, trucks, RVs, and boats. Other items might include personal watercraft, all-terrain vehicles, and even planes. Commercial items may include farm and industrial equipment. Industrial equipment sometimes includes road rollers, cranes, forklifts, backhoes, bulldozers, and more. Of course, to repossess some equipment, an agent needs special skills and special licenses.

Repo Equipment and Startup Costs

Unless working for an agency that supplies the equipment, a repo agent needs certain equipment. Usually you will need a vehicle, such as a tow truck or a vehicle with a dolly caster system. (Check your state laws: often there is a special driver’s license issued to tow truck drivers.) Some tow trucks have a tire or wheel lift device, which lessens the damage to the towed vehicle. There is special towing gear that attaches to pick-up trucks; some models stow away the gear so that no one knows the truck is a repo truck. As you can see, the initial investment in starting a business can be costly. In addition to physical equipment, there are intangible items: license fees, vehicle insurance, utilities (gas, vehicle upkeep, etc), and other expenses. You may even need additional insurance in case you or someone else damages the repossessed item during the repossession process.

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Paperwork!

Every job has its bureaucracy and this job entails an unusual amount of paperwork. State or local regulations often require a repo agent to notify – often in writing – local law officials either before and/or after taking the vehicle. An agent usually files paperwork with the person(s) requesting the repo and sometimes with local or regional branches of a company.

Legal Repossessions and Illegal Ones

Consider the job requirements before you commit to the job, especially if you are putting up the money for licenses, insurances, and equipment. Television and movies portray it is a glamorous, fun job. The truth is that it is mostly boring and repetitive. Occasionally an enraged vehicle owner causes trouble, but generally, the most successful agents avoid trouble. Companies that hire repo agents prefer to hire the agents who avoid conflicts, which can leave a repossessed item damaged or people injured. The line between a legal repossession and an illegal one sometimes lies in how the repo agent handles the situation. No legitimate business wants the bad publicity of a poorly performed repossession job.

In Conclusion: The Nuts and Bolts

Becoming a repo agent, typically, is a combination of proper learning (either schooling or apprenticeship) and a few nuts and bolts basics. Check with the laws and regulations and abide by them to ensure that your repossessions are legal. Establish yourself as a reliable agent by working for a respected agency before branching out on your own. Have good cash stash — some of the specialized equipment that makes the repossessing job easier is very expensive.